Transport Minister Joe Mizzi this evening defended the €23 million subsidy that will be given to the new buses company next year, saying that on a per capita basis Germany spent more in transport subsidies.

Mr Mizzi was participating in the post-Budget meetings organised by the individual ministries as part of the 'Government that listens' campaign.

Spanish company Autobuses de Leon is expected to take over the bus service from January but the signing of the agreement was held up after a rival bidder filed judicial proceedings, claiming unfair treatment.

"I am convinced that when the new operator takes over and the new routes are fazed in, more people will shift from using their private car to public transport, leading to less traffic congestion," he said.

Mr Mizzi said he understood the frustration over traffic congestion but insisted the road infrastructure was not good enough several years ago let alone today.

Transport Malta took short term measures to solve certain bottlenecks and bus lanes in Sliema, Msida, Marsa and Floriana would ease congestion over the medium term, he added.

The longer-term projects, he said, included major road works such as the Kappara and Marsa junctions.

Mr Mizzi said work on the Kappara Junction would start when the Coast Road works ended next year not to create additional congestion because of closed roads and diversions.

The minister also said that bus drivers with an attitude problem would be retrained and none would lose their job when the new operator took over

The public transport company, currently run by the State, had an open call for applications, he said.

"Anybody who wants to become a driver can apply," he said when asked whether Maltese drivers would be replaced by foreigners.